Effective Tax Rate – Explained

What is the Effective Tax Rate?Effective tax rate is the average tax rate applied to a individual or corporations income. Formulas for calculating an effective tax rate are as following; For an individual: Effective tax rate = Total Tax Expense Taxable Income For a...

Estimated Taxes – Explained

What are Estimated Tax?Estimated tax is an estimated amount that is paid periodically on ones earned income to cover the tax liability. Estimated tax is calculated for those income sources that are not directly subject to withholding taxes, such as dividend earnings,...